The bill mandates the Office of the Insurance Commissioner in Washington to conduct a study on insurance coverage options for projects that develop permanently affordable homeownership units. The study aims to explore various insurance approaches to mitigate costs associated with condominium construction defect liability while ensuring access to necessary insurance coverage. It will involve consultations with nonprofit organizations, government entities, and insurers relevant to these projects. The findings from past insurance market studies conducted since December 31, 2017, will be utilized to inform the analysis and recommendations.

The insurance commissioner is required to submit a report by December 31, 2025, detailing an actuarial analysis of the unique risks faced by nonprofit organizations and government entities in the context of condominium construction defect liability. The report will also include insights on how the commissioner and insurers can help reduce these costs and propose new or existing insurance products that could lower expenses for the sponsoring organizations. The bill defines "permanently affordable homeownership" and outlines specific conditions that these units must meet, including sponsorship by nonprofit or governmental entities and adherence to affordability restrictions. This section of the bill will expire on December 31, 2025.